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Accountancy basics

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is Accountancy ?

a)

Art

b)

Science

c)

Art and science

d)

None of these

2.

How many types of accounts are there?

a)

1

b)

2

c)

3

d)

4

3.

Is trail balance is an accounts?

a)

Yes

b)

No

c)

Don’t know

d)

None of these

4.

Example of Personal accounts?

a)

Cash

b)

Bank

c)

Salary

d)

Outstanding salary

5.

Double entry system means

a)

Twice recorded

b)

Once in ledger once in journal

c)

Recording of both aspects of transaction

d)

None of these

6.

Trade discount means

a)

Cash discount

b)

No discount

c)

Reduction in price

d)

None of these

7.

Current assets example

a)

Debtors

b)

Capital

c)

Drawing

d)

Furniture

8.

If the capital of a business is ₹ 5,00,000 and outside liabilities are ₹200,000. Calculate total assets of the business.

a)

3,00,000

b)

7,00,000

c)

10,00,000

d)

2,50,000

9.

Amount which the firm owes to outsiders is known as.....

a)

Capital

b)

Expenses

c)

Liability

d)

Asset

10.

Assets held for continued use in the business and not meant for resale are termed as..........

a)

Fixed asset

b)

Current Asset

c)

Tangible asset

d)

Intangible Asset

11.

Which of the following equation is correct.....

a)

Assets= Liabilities - Capital

b)

Liabilities= Assets - Capital

c)

Capital= Assets + Liabilities

d)

Assets= Capital- Liabilities

12.

.......... Refers to those liabilities which are to be paid normally with in one year.

a)

Current liability

b)

Non Current Liability

c)

Loan

d)

Borrowing

13.

Which of the following will not be recorded in the books of account?

a)

Sales of goods

b)

Payment of salary

c)

Quality of Staff

d)

Purchase of goods

14.

Anu is a furniture merchant. Which one of these transactions will not be recorded in her books ?

a)

purchases of wood

b)

sofa set purchases

c)

sale of books

d)

dinning table given as gift

15.

Examples of revenue expenditure

a)

Purchase of machinery

b)

Cost of leasehold land

c)

Cost of purchased Goodwill

d)

Cost of stationery

16.

Maintenance of books of accounting which is often routine and clerical in nature is called .....

a)

a. Accountancy

b)

b. Financial Management

c)

c. Accounting

d)

d. Book-Keeping

17.

In accrual accounting, an expense is recognized when it is:

a)

paid

b)

posted to the general ledger

c)

incurred

d)

either b or c

18.

In cash basis accounting, an expense is recognized when it is:

a)

posted to the general ledger

b)

paid

c)

incurred

d)

none of the above

19.

Find Odd One - Building, Machinery,Furniture,Bills Payable

a)

Building

b)

Machinery

c)

Furniture

d)

Bills Payable

20.

According to the rules of debit and credit, which of the following statement is correct ?

a)

To record an increase in an asset, that account must be debited

b)

To record an increase in a liability, that account must be debited

c)

To record and increase in a revenue, that account must be debited

d)

To record an increase in an expense, that account must be credited